Tesla (TSLA, Financial) is set to release its first-quarter earnings, with analysts predicting stable revenue but a possible decline in automotive margins. Key focuses for investors include the timeline for Tesla's affordable electric car and the progression of the Robotaxi project. Despite a significant drop in first-quarter deliveries, Tesla's revenue is estimated to reach $21.35 billion, supported by carbon credit sales and energy business contributions.
Visible Alpha reports that Tesla's automotive gross margin, excluding carbon credits, may decrease to 11.83% from 13.6% in the previous quarter. Analysts attribute this to Tesla offering discounts to boost sales, affecting profit margins. Deutsche Bank analyst Edison Yu highlights further sales incentives like free charging or self-driving features may impact profitability. Investors are also watching for product plans that could restore market confidence.
Expected affordable car releases have been delayed, with the new model potentially being a simplified version of the Model Y. Tesla's self-driving taxi service faces skepticism due to past delays and safety concerns. Brand image issues have emerged, with social backlash and protests affecting Tesla's market value. Since the beginning of the year, Tesla's stock has dropped nearly 40%, losing over $500 billion in market capitalization.
